Truckers' strike plays spoilsport, inflation rises to 5.6%

After declining for ten consecutive weeks inflation for the week ended January 10 touched 5.6 per cent from 5.24 per cent in the previous week due to higher prices of edible items like fruits and vegetables. The prices of fruits and vegetables increased due to the truckers' strike.

The increase in the rate of price rise, which happened after two months, was due to an eight-day nation-wide strike by truck operators, which began on January 5. Among the items that became expensive during the week were fruit and vegetables (9 per cent), wheat (2 per cent) and spices, milk, ragi and rice (1 per cent each).

Inflation, measured by movements in wholesale prices, rose by 36 basis points for the week ended January 10. It was 4.36 per cent a year ago.

The index of primary articles increased by 2.2 per cent. Though the index of fuel items remained unchanged during the week, the manufactured items index rose by 0.2 per cent.

In the manufactured food products category, oil cakes became expensive by 8 per cent, canned fish by 43 per cent, and imported edible oil and coconut oil by 7 per cent each. Items that reported decline in prices include unrefined oil (8 per cent) and groundnut oil (1 per cent). The prices of rubber and plastic products too went down marginally.